A HOMEOUSE was shocked when she received news that her mortgage payments were increasing.
She was unaware of the hidden fees that resulted in a $400 increase in her monthly payments.
Buying a home can often bring unexpected surprises and challenges.
This was the case for Jenn Ram (@_jennram_), who bought his first house at just 23 years old.
The homeowner turned to TikTok to discuss her unexpected increase in her mortgage payment.
“So here’s something they won’t tell you when you buy a house,” she began. video.
The content creator explained that her mortgage payment was $1,151 when she purchased her home.
After a year of living in the house, her mortgage increased to $1,579 – an increase of $428.
“I thought I was traveling,” she said. “I was under the impression that my mortgage payment would literally never change. But I was wrong.”
HIDDEN FEES
Ram explained that his home underwent renovations that increased the property value, subsequently increasing property taxes.
She noted that local tax authorities or appraisers perform an annual appraisal of homes to determine their current market value.
“I’m really, really upset with my mortgage lender and my real estate agent for not explaining this to me,” she said.
“And the reason I’m so upset is because I would have been okay with it if they had explained it to me and I was ready and prepared.
“But no, I just got a bill in the mail and it said a $428 raise due in two months.”
The content creator blamed real estate agents and mortgage lenders for not informing homeowners about these hidden fees – especially young or first-time buyers.
“They don’t want to give you all the information upfront because they just want to make the sale. They just want to make money,” she said.
“I believe this is so unethical.”
TIK TOK COMMENTS
In the comments section, new homeowners shared similar experiences with rising mortgages.
“Yes, this was never explained to me when I bought my house either! When I bought my house, I thought my mortgage would always stay the same too! No!” shared a user.
“The same thing happened to me. I was lost. I called immediately and they had to explain,” wrote another.
One user commented that their deposit probably increased, not the mortgage itself.
Others suggested that Ram apply for a homestead tax exemption, which could reduce the taxable value of his primary residence.
A portion of a home’s value is exempt from property taxes, resulting in lower tax bills.
Lien and Mortgage Increases Explained
What is a deposit? Why did my mortgage payment go up?
Escrow accounts are created to help homeowners cover insurance, property taxes, or other home-related expenses.
If you have a deposit, part of your monthly mortgage payment goes into the account.
The escrow management company then uses the money in the escrow account to pay taxes and insurance when those payments are due.
Essentially, escrow bundles these other charges with your monthly principal payments, making them easier to manage. The goal is to make homeowners less likely to default on payments.
If the government’s annual assessment of your home determines that property taxes will increase, escrow payments may also increase, meaning even those with fixed mortgage payments could end up shelling out more money every month.
In certain areas, the homestead exemption also protects property owners from certain types of tax increases.
For example, they can limit the amount a property’s assessed value can increase annually, helping to stabilize property taxes.
In related news, a financial planner shares steps to take if you feel like a “mortgage prisoner” trapped in your home by low interest rates.
Plus, one homeowner was left stranded after her mortgage increased – one expert said “this should have been explained” and could have been “negotiated”.
This story originally appeared on The-sun.com read the full story
